Note to Self: Potential Dealbreakers:

For political viability and rough equity, the financial rescue plan requires:

Pay reform

Cancellation of current golden parachutes

Look backs in the future--pay over $1M conditioned on the long-term profitability of the enterprise over more than a decade

Substantial upside for the government

Immediate substantial equity dilution via warrants for companies that put any substantial share of their assets to the Treasury

Congressional approval of terms

Personnel: I wouldn't vote for anything that could give a McCain-appointed Treasury Secretary this much authority. I don't think I know Paulson well enough to trust him with this much authority. (I would trust Bernanke.)

Comments

For political viability and rough equity, the financial rescue plan requires:

Pay reform

Cancellation of current golden parachutes

Look backs in the future--pay over $1M conditioned on the long-term profitability of the enterprise over more than a decade

Substantial upside for the government

Immediate substantial equity dilution via warrants for companies that put any substantial share of their assets to the Treasury

Congressional approval of terms

Personnel: I wouldn't vote for anything that could give a McCain-appointed Treasury Secretary this much authority. I don't think I know Paulson well enough to trust him with this much authority. (I would trust Bernanke.)